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RAM supply set to worsen, says Micron, as CEO celebrates ‘much higher’ prices
The Register • • general
Key Points:
- Micron CEO Sanjay Mehrotra warned that RAM shortages will continue through 2028 and possibly beyond, with demand exceeding supply and prices remaining high.
- The company plans to open new factories in 2028 supported by a $25 billion capital expenditure, but these will not immediately alleviate supply constraints or reduce prices.
- Demand for high-bandwidth memory (HBM) used in AI hardware is growing faster than DRAM for servers, and Micron is working to improve HBM profitability, though both memory types remain highly profitable.
- Micron reported significant financial growth in Q4 FY2026, with revenue rising to $54.25 billion and net income increasing by 895% to $85 billion, driven by strong sales in cloud memory and datacenter SSDs.
- The company forecasted Q1 FY27 revenue of around $61.5 billion and a gross margin of 86.25%, while highlighting future collaborations such as with NVIDIA on custom HBM4E technology for next-gen GPUs.
